With Interest Rates Rising, Will Assumable Mortgages Make a Comeback?
Mortgage interest rates are the highest we've seen since the great recession in 2008.
We've all been spoiled by low rates in the 2's and 3's over the past few years, so seeing 6 and even 7 percent interest rates is shocking to some. But, don't worry, as a future home buyer you have options.
When searching for a home, and before you sign the contract, ask your Realtor to locate those sellers who have an assumable mortgage. As assumable mortgage allows a new home buyer to take over the seller's loan payments and terms. This includes their low interest rate. If the seller has purchased within the last 5 - 7 years, chances are they have a great low rate. You would have to qualify for the mortgage and pay the equity difference, but it's worth a look.